How does this functionality work? More specifically, if you check the option “Enable Vendor GST Amount (ACY)” what happens to GL Entries once posted?
General Ledger Setup LCY is AUD and Additional Reporting Currency is AUD as well. The posted invoice has BLANK currency code, so it used the LCY which is AUD as well. The resulting GL Entry is as shown in the screenshot. Ex Rate loss has Zero Amount but has the ACY corresponding to the Amount of GST Paid on Purchase GL Account.
Now, when the posted invoice has the Currency Code AUD filled up on it, the GL Entry for Ex Rate Loss does not show up and the GST Paid on Purchases will then show the same ACY and LCY.
PLease I need your information regarding this functionality. Your help will be greatly appreciated. Thanks in advance!
What is obvious to us now is if the invoice does have the AUD currency code while the LCY and ACY is AUD as well, there won’t be any GL Entry for Ex Rate Loss and the GST Paid on purchases account will have the same ACY and LCY.
You should never allow users to use their local currency code directly. If your local currency is AUD, then this currency should basically be blocked in the system. This is very important and not doing it can cause problems later.
Thanks for the response. I get your point regarding the local currency. But may I ask a more straight forward question, "What is the purpose of enabling this Vendor GST Amount (ACY)? We were not the one who implemented this but now supporting this AU client. I hope you could help us regarding its function whether checked or unchecked. This is standard for AU. Online help (F1) has no information regarding this.